Go through all the links above and answer the below scenario
Close to 50% of the typical industrial and retail firm’s assets are held as working capital. Many newly minted college graduates work in positions that focus on working capital management, particularly in small businesses in which most new jobs are created in today’s economy.
To prepare for this Discussion: Shared Practice, select two of the following components of working capital management: the cash conversion cycle, the cash budget, inventory management, and credit policies. Think about scenarios in which your selected topics were important for informing decision making. Be sure to review the video links above and conduct additional research using academically reviewed materials, and your professional experience on working capital concepts to help develop your scenarios. Support your discussion with appropriate examples including numerical examples as necessary.
Atleast 3 references
No Plaigirism
Atleast 1000 words.
Answer preview
One of the scenarios in which inventory management is important in helping a firm make informed decisions is when deciding how to optimally utilize the available resources. When a firm has an effective inventory management system, it is better positioned to track its inventory in real-time, which is critical in maintaining stock control. Inventory management facilitates decision-makers in a firm to only order inventory when needed for the purpose of ensuring that the resources invested in inventory are maintained to a minimum while also satisfying the customers’ demands (Karadağ, 2018). Without inventory management, the firm can face liquidity problems as excess resources are tied in working capital as inventories. Inventory
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